widely Acclaimed for their safety, the euro funds will earn less this year… and the following. Don’t run away from for as much. And do you diversify wisely to risky assets.
C ‘is written. The returns of the funds in euros will decline this year from 30 to 50 cents, to display an average rate net of management fees of around 1.90 % (before social contributions). This decline is inexorable : you will not get more than 1 %, or even less, by three to four years. Not very enticing. The reason for this ? Insurers place your donations in the State bonds. With a yield under 1% for the latter, and sometimes much less, how will they be able to give more to the insured ?
The decline in bond yields is weighing on the returns
In addition, new solvency standards are pushing life insurers to ever greater prudence in the management of the savings entrusted to them. They are also monitored by the control authorities, which could constrain the rules to introduce a cap on the rates offered.
But more than government intervention, it is the evolution of bond markets in the coming years that will be decisive for the life insurance. If bond rates remain on the floor, the performance of the fund in euros shall be permanently sealed, to near zero. Conversely, a rise too sharply could cause massive outflows of investors, attracted by other investments more profitable, and, in turn, put in danger some companies.
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don’t panic, the future is without doubt in between the two. And for the time being, the euro funds retain clear advantages. Reminder : the invested capital net of costs is guaranteed in everyday life, the interest paid each year are permanently acquired (the so-called ratchet), and the savings can be recovered at any time. Better, amounts paid on this type of support are not capped ! A picture that made the success of the life insurance.
Of the rest, the lower returns should be seen in the light of inflation near zero. Carry around 1.50% real rate of return (net of inflation and social taxes) for a guaranteed investment in 2016 remains a matter very interesting, much more than the booklets regulated (0.75% for the livret A and the livret de développement durable, a 0.85 % net for the plan, housing savings).
What is your life insurance ? Like in school, your life insurance policy has been marked out of 20 by the writing !
It must not be forgotten that the averages displayed mask disparity of performance spectacular : in 2015, the best contracts awarded around 3 % of the net, when other turned around 1.50 %. On the remote, such differences weigh heavily. This is a first trail to get a better performance : make the hunt for contracts more generous, offering the greatest gains over several years, with charges on payments to moderates. Our annual Grand Prize is there to guide you in this arduous task, both the commercial offering is dense with hundreds of life insurance policies proposed. And if you hold contracts to mediocre, ask yourself seriously the question of the keep.
Take risks… but keep the control
This observation posed, be lucid. Bet everything on the euro funds is no longer an optimal strategy, except to accept a stagnation of its share capital within a few years. Also, tomorrow, can you still put 100 % of your life insurance funds in euros ? Not sure. Some insurers modify openly the conditions of access to this guaranteed support, as recently Spirica or Apicil Assurances, requiring the policyholder to invest part of the funds to be risky. Others do it more discreetly on the large amounts paid. Worse, the guarantee capital of the fund in euros starts to be questioned. At Generali, by as early as 2017, for new subscriptions, it will no longer net but gross of management fees. In other words, a guarantee trompe-l’oeil.
So what to do ? The track of the euro funds the so-called alternative is a niche that is not easily accessible, except to turn to the contracts of the Web. But here also, impossible to put 100 % of your bet, their access being more and more conditioned to taking risk in parallel. Risk, the word is out. In an attempt to improve the performance of your contract, it will have to accept, that a part of your savings is no longer guaranteed. It is the wish of the insurers, who push you to invest in units of account, that is to say, the equity, bond or real estate contained in their contracts, multi-purpose.
Of multi-media to diversify its savings
This way makes sense over the medium term, with at least five years in front of you. Above all, be true to yourself. The management of heritage is above all a matter of temperament and practice. Epargnant little warned, keep it simple : a little bit of funds in euros and a cocktail is limited to one to three diversified funds for the rest. With regular payments, you will avoid to invest at a peak, and you smooth the purchase price of the fund. And take your gains before they disappear in the refereeing from a threshold (7 % of gain) to the fund in euro. Above all, opt for simple contracts, and quality.
6 multi-purpose to the high yields
6 contracts of life insurance multi-support
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Insurance life : rates / returns contracts
Two types of life insurance are worth more than a life Insurance : how to earn more life Insurance : what to do in the face of declining rates?
If you are an investor, autonomous, able to decipher the financial offer of the contracts, and carry it with you on products that are more rich, especially those disseminated on the Web or through advisers in wealth management. You’ll be able to make an allocation more thin between the funds secured and the others and proceed in a more active way adjustments. You can also access the stone paper, with a few real estate investment trusts (REITS) providing yields still appealing (4 to 5 %).
